The Effect of Block Holders on the Quality of Financial Reporting in the Listed Companies in Tehran Stock Exchange

Abstract

Abstract. The present study aimed to examine the effects of block holders on the financial reporting quality in listed companies in Tehran Stock Exchange. Accordingly the systematic elimination was used for sampling. The study, includes companies ranging from financial year 1388 to 1392 (2009-2013)(five financial year). Among 592 main companies of the stock, and after deducting a number of banks and insurance and investment companies and a number of companies with incomplete financial information, finally 119 companies with full financial information were selected. To examine the relationship between dependent and independent variables, panel or pooled regression was used. After examining the research model variables, which are the competition of block and institutional shareholders, the quality of financial reporting and other control variables, it was found that block holders influence the quality of financial reporting of listed companies in Tehran Stock Exchange.